Anwendbar ist der DSA auf alle Vermittlungsdienste, die ihre Dienstleistungen in der EU anbieten. Davon ausgenommen sind Klein- und Kleinstunternehmen. Es gilt analog zur DSGVO, die extraterritoriale Wirkung, weshalb somit auch Schweizer Online-Vermittlungsdienste, die ihre Dienstleistungen in Europa anbieten, grundsätzlich ab Inkrafttreten der Verordnung unter den DSA fallen. Nachfolgend wird zwischen vier Kategorien von Online-Intermediären unterschieden, wobei gilt, je höher die Kategorie, desto umfassender die Pflichten gemäss DSA.

Kategorie 1: Alle Vermittlungsdienste / Online-Intermediäre

• Pflicht, gegen illegale Inhalte vorzugehen und/oder Pflicht zur Herausgabe von Informationen, falls verfügt (keine Überwachungspflicht der Vermittlungsdienste / Online-Intermediäre);
• Einrichtung einer zentralen Kontaktstelle (single–point-of–contact) in der EU;
• Ernennung eines Rechtsvertreters, falls keine Niederlassung in der EU;
• Transparenzpflichten in den allgemeinen Geschäftsbedingungen;
• Mindestens jährliche Berichterstattung an den Koordinator für digitale Dienste des EU-Mitgliedstaates über Moderation von Inhalten.

Kategorie 2: Nur Hosting-Provider (inkl. Online-Plattformen)

• Alle Pflichten aus Kategorie 1 und zusätzlich:
• Pflichten zu Melde- und Abhilfeverfahren;
• Mitteilung der Gründe für Entfernung von Inhalten oder Zugangssperren;
• Veröffentlichung von anonymisierten Entscheiden.

Kategorie 3: Nur Online-Plattformen

• Alle Pflichten aus Kategorie 1 + 2 und zusätzlich:
• Beschwerde- und Rechtsbehelfsmechanismus sowie aussergerichtliche Streitbeilegung;
• Priorisierung von Meldungen von sog. „vertrauenswürdigen Hinweisgebern“;
• Massnahmen gegen missbräuchliche Meldungen sowie Gegendarstellungen;
• Sicherheitsüberprüfung von Drittanbietern;
• Transparenz von Online-Werbung gegenüber Nutzerinnen;
• Meldung von Straftaten.

Kategorie 4: Nur sehr grosse Online-Plattformen (mehr als 45 Mio. User/Monat)

• Alle Pflichten aus Kategorie 1, 2 + 3 und zusätzlich:
• Risikomanagement-Pflichten und Ernennung eines Compliance-Beauftragten;
• Jährliche externe Risikoprüfungen und öffentliche Rechenschaftspflicht;
• Transparenz der Empfehlungssysteme und Wahlmöglichkeiten für Nutzerinnen beim Zugriff auf Information;
• Datenaustausch mit Behörden aus der Forschung.

Bei Verletzungen drohen den Unternehmen empfindliche Geldbussen von bis zu 6% der Jahreseinnahmen oder des Jahresumsatzes. Zudem können Geldstrafen für fortgesetzte Verstösse in Höhe von bis zu 5% des durchschnittlichen Tagesumsatzes verhängt werden.

Besteht nun Handlungsbedarf für Ihr Unternehmen?

Zwar wird die Verordnung voraussichtlich erst 2023 in Kraft treten, wir empfehlen Ihnen jedoch, frühzeitig die kommenden Entwicklungen zum DSA zu verfolgen und insbesondere schon vorab abzuklären, ob Ihr Unternehmen unter den DSA fallen wird.

Haben Sie weitere Fragen? Das HütteLAW-Team berät Sie gerne.

Author: Stephanie Kaiser

This content appears as a courtesy of HütteLAW, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.huettelaw.ch.

The post Der neue Digital Services Act appeared first on China Collaborative Group.

Personal Information Protection Law (‘PIPL’), effective from 1 November 2021, regulates those collecting and handling personal information. For companies processing employee data, a robust data security system should be integrated into the IT infrastructure and in line with PIPL.

Whilst PIPL largely affects companies handling consumer data, employers are not immune from PIPL and should be fully compliant to mitigate risks. Specifically, the Civil Code of the People’s Republic of China amended in 2020 defines personal information as the below.

‘Personal information refers to any information electronically or otherwise recorded that can be used, either alone or in combination with other information, to identify a specific natural person, including the name, date of birth, identification document number, bio-metric information, address, telephone number, email address, health information or whereabouts of the natural person.’ (Article 1032)

Therefore, employers should strengthen internal employee data management systems to secure employees’ data. At Horizons, we have been advising companies in formulating compliance mechanisms. In the below, we outline the main dos and don’ts of processing employee data from our experience.

Do implement a classification management

Companies should review the existing personal information of employees and classify the information according to the level of sensitivity. Under PIPL, employers are not required to obtain employees’ consent where it is necessary for carrying out human resources management under an employment policy legally established or collective legally concluded (Art. 13). However, separate consent is required for the handling of information that is not included in employment policies or labour contracts. Namely, companies processing sensitive information that is not included in human resources management (including religious beliefs, biometrics, specific identities, medical and health and financial accounts, whereabouts, and other information of a natural person) will need to obtain a separate consent and sensitive personal information are subject to stricter measures.

We suggest companies utilise a classification system on the personal information held and establish robust policies to process the data according to PIPL.

Don’t overlook technical security measures

Companies should have already established cyber security measures under the Cyber Security Law (‘CSL’) effective from 2017. Specifically, the network system should be protected from cyber-attacks and leakage. Regularly reviewing the IT system and updating equipment and software are essential for companies to be safeguarded from new forms of cyber-attacks.

Equally, contracting the processing of personal information to third parties can be vulnerable areas. We advise companies to review related contracts/agreements to ensure third parties do not infringe on personal privacy rights. If necessary, clauses should be redrawn to comply with PIPL and CSL.

Do assess control and schedule regular training

Where necessary, companies may only transfer personal information outside of mainland China by meeting one of the conditions in Article 38 of PIPL.

• Where a security assessment organized by the national cyberspace authority has been passed under
• Article 40 of this Law;
• Where certification of personal information protection has been given by a professional institution in accordance
• with the regulations of the national cyberspace authority;
• Where a contract in compliance with the standard contract provided by the national cyberspace authority has
• been concluded with the overseas recipient, establishing the rights and obligations of both parties; or
• Where any other condition prescribed by law, administrative regulations, or the national cyberspace authority is
• met.
• Where there is any stipulation on the condition or any other stipulation for the provision of personal information to a recipient outside the territory of the People’s Republic of China in any international treaty or agreement concluded or
• acceded to by the People’s Republic of China, such stipulation may apply.

Though the national cyberspace authority has not issued the aforementioned materials yet, companies must draft a control mechanism and regular training for related personnel-in-charge to ensure international data transfer complies with PIPL and forthcoming regulations.

Don’t neglect incidents emergency response plan

The amended Civil Code addresses the protection of personal information and the right to privacy. Privacy is defined under the Civil Code as the following:

The private life of a natural person is not to be intruded upon, as well as any private space, private activity, or private information of the natural person that he or she does not want to be known by others. [And] no organization or individual may, by means of spying, intrusion, exposure, disclosure, or otherwise, infringe upon another’s right to privacy. (Article 1032)

In other words, employers must protect the employee’s personal information and their right to privacy when handling employees’ data. As a result, companies should not neglect to implement an incident emergency response plan to demonstrate their commitment to protecting personal information. The company may utilise the emergency response plan provisions under CSL as guidelines.

Both the amended Civil Code and PIPL call for employers to strictly regulate the handling of employees’ personal information. Specifically, a comprehensive internal governance system should be established to migrate penalties. Failure to perform obligations under the PIPL can be subject to a fine of CNY 1 million on the violator and any person in charge or another individual directly involved will face fines between CNY 100,000 and CNY 1 million, as well as be suspended from serving as director, supervisor, senior officer, or personal information protection officer of an enterprise for a period of time.

Consequently, severe penalties require employers to act immediately and understand PIPL obligations seriously.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

The post The Dos and Don’ts of Processing Employee Data under Personal Information Protection Law in China appeared first on China Collaborative Group.

Der Digital Services Act (DSA) ist eine neue Verordnung der Europäischen Union, die damit sog. Online-Vermittlungsdienste (Online-Intermediäre) wie Marktplätze oder Social Media Plattformen stärker in die Pflicht nehmen und höhere Transparenz im Internet schaffen will. Durch den DSA soll auch die enorme Marktmacht der grossen amerikanischen Tech-Konzerne  eingeschränkt werden. Der neue Rechtsrahmen für Online-Angebote soll voraussichtlich 2023 in Kraft treten.

Anwendbar ist der DSA auf alle Vermittlungsdienste, die ihre Dienstleistungen in der EU anbieten. Davon ausgenommen sind Klein- und Kleinstunternehmen. Es gilt analog zur DSGVO, die extraterritoriale Wirkung, weshalb somit auch Schweizer Online-Vermittlungsdienste, die ihre Dienstleistungen in Europa anbieten, grundsätzlich ab Inkrafttreten der Verordnung unter den DSA fallen. Nachfolgend wird zwischen vier Kategorien von Online-Intermediären unterschieden, wobei gilt, je höher die Kategorie, desto umfassender die Pflichten gemäss DSA.

Kategorie 1: Alle Vermittlungsdienste / Online-Intermediäre

• Pflicht, gegen illegale Inhalte vorzugehen und/oder Pflicht zur Herausgabe von Informationen, falls verfügt (keine Überwachungspflicht der Vermittlungsdienste / Online-Intermediäre);
• Einrichtung einer zentralen Kontaktstelle (single–point-of–contact) in der EU;
• Ernennung eines Rechtsvertreters, falls keine Niederlassung in der EU;
• Transparenzpflichten in den allgemeinen Geschäftsbedingungen;
• Mindestens jährliche Berichterstattung an den Koordinator für digitale Dienste des EU-Mitgliedstaates über Moderation von Inhalten.

Kategorie 2: Nur Hosting-Provider (inkl. Online-Plattformen)

• Alle Pflichten aus Kategorie 1 und zusätzlich:
• Pflichten zu Melde- und Abhilfeverfahren;
• Mitteilung der Gründe für Entfernung von Inhalten oder Zugangssperren;
• Veröffentlichung von anonymisierten Entscheiden.

Kategorie 3: Nur Online-Plattformen

• Alle Pflichten aus Kategorie 1 + 2 und zusätzlich:
• Beschwerde- und Rechtsbehelfsmechanismus sowie aussergerichtliche Streitbeilegung;
• Priorisierung von Meldungen von sog. „vertrauenswürdigen Hinweisgebern“;
• Massnahmen gegen missbräuchliche Meldungen sowie Gegendarstellungen;
• Sicherheitsüberprüfung von Drittanbietern;
• Transparenz von Online-Werbung gegenüber Nutzerinnen;
• Meldung von Straftaten.

Kategorie 4: Nur sehr grosse Online-Plattformen (mehr als 45 Mio. User/Monat)

• Alle Pflichten aus Kategorie 1, 2 + 3 und zusätzlich:
• Risikomanagement-Pflichten und Ernennung eines Compliance-Beauftragten;
• Jährliche externe Risikoprüfungen und öffentliche Rechenschaftspflicht;
• Transparenz der Empfehlungssysteme und Wahlmöglichkeiten für Nutzerinnen beim Zugriff auf Information;
• Datenaustausch mit Behörden aus der Forschung.

Bei Verletzungen drohen den Unternehmen empfindliche Geldbussen von bis zu 6% der Jahreseinnahmen oder des Jahresumsatzes. Zudem können Geldstrafen für fortgesetzte Verstösse in Höhe von bis zu 5% des durchschnittlichen Tagesumsatzes verhängt werden.

Besteht nun Handlungsbedarf für Ihr Unternehmen?

Zwar wird die Verordnung voraussichtlich erst 2023 in Kraft treten, wir empfehlen Ihnen jedoch, frühzeitig die kommenden Entwicklungen zum DSA zu verfolgen und insbesondere schon vorab abzuklären, ob Ihr Unternehmen unter den DSA fallen wird.

Haben Sie weitere Fragen? Das HütteLAW-Team berät Sie gerne.

Author: Stephanie Kaiser

This content appears as a courtesy of HütteLAW, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.huettelaw.ch.

The post The New Digital Services Act appeared first on China Collaborative Group.

Voraussichtlich Mitte/Ende 2022 wird das neue Schweizer Datenschutzgesetz (nDSG) in Kraft treten, welches den aktuellen Erlass aus dem Jahr 1992 ersetzen wird. Dieser ist in Anbetracht der rasanten technologischen Entwicklung ziemlich in die Jahre gekommen, gab es doch bei seiner Inkraftsetzung 1992 weder Google, Facebook noch das iPhone. Das Ziel der Revision ist die Anhebung des Datenschutzrechts auf das Niveau der EU und entsprechend eine Annäherung an die EU-Datenschutzverordnung (DSGVO).

Nachfolgend die wichtigsten Neuerungen gegenüber dem geltendem Recht:

1. Kein Schutz mehr von Daten juristischer Personen

Bis anhin fielen natürliche und juristische Personen unter das Schweizer Datenschutzgesetz (DSG). Neu ist das Schweizer DSG nur noch auf natürliche Personen anwendbar, die Daten von juristischen Personen fallen nicht mehr darunter. Letztere können sich aber weiterhin z.B. auf den Persönlichkeitsschutz nach ZGB berufen.

2. Neue Kategorien von besonders schützenswerten Personendaten

Die Kategorien der besonders schützenswerten Personendaten wurden erweitert. Neu zählen auch Daten über die Zugehörigkeit zu einer Ethnie, genetische Daten und biometrische Daten, die eine natürliche Person eindeutig identifizieren, dazu.

3. Regelung des Profilings

Aktuell ist das „Profiling“ nicht explizit im Gesetz erwähnt. Neu enthält das Datenschutzgesetz eine Legaldefinition von „Profiling“ und „Profiling mit hohem Risiko“. Profiling mit hohem Risiko liegt dann vor, „wenn die automatisierte Bearbeitung von Personendaten und eine Verknüpfung von Daten die Beurteilung wesentlicher Aspekte der Persönlichkeit erlaubt.“ Bei Profiling mit hohem Risiko muss eine allenfalls erforderliche Einwilligung der betroffenen Person für die Datenbearbeitung ausdrücklich vorliegen.

4. Datenschutz durch Technik und datenschutzfreundliche Voreinstellungen

Die beiden Grundsätze des „Datenschutzes durch Technik“ und „Datenschutz durch datenschutzfreundliche Voreinstellungen“ sind neu im Datenschutzgesetz verankert. Datenschutz durch Technik (Privacy-by-Design) bedeutet, dass vom Verantwortlichen bereits bei der Planung der Verarbeitung von Personendaten angemessene technische und organisatorische Massnahmen getroffen werden müssen, um die Umsetzung von Datenschutzgrundsätzen zu gewährleisten (z.B. Datenminimierung, selektiver Passwortschutz, etc.). Beim Datenschutz durch datenschutzfreundliche Voreinstellungen (Privacy-by-Default) geht es darum, dass beispielsweise Apps oder Websites so gestaltet werden, dass die Bearbeitung der Personendaten auf das für den Verwendungszweck nötige Mindestmass beschränkt ist.

5. Auftragsbearbeiter

Neu darf ein Auftragsbearbeiter von Daten nur mit vorgängiger Genehmigung des Verantwortlichen einen Dritten für die Datenbearbeitung beiziehen. Im aktuellen Datenschutzgesetz ist diese Genehmigung noch nicht erforderlich.

6. Verzeichnis sämtlicher Bearbeitungstätigkeiten

Der Verantwortliche muss neu ein Verzeichnis über sämtliche Bearbeitungstätigkeiten von Daten führen. Wird die Datenbearbeitung an einen Auftragsbearbeiter delegiert, müssen der Verantwortliche und der Auftragsbearbeiter je ein separates Verzeichnis führen.

Folgende Mindestangaben müssen in einem solchen Verzeichnis enthalten sein:

– Identität des Verantwortlichen;

– Bearbeitungszweck;

– eine Beschreibung der Kategorien betroffener Personen und der Kategorien bearbeiteter Personendaten;

– die Kategorien der Empfängerinnen und Empfänger;

– wenn möglich die Aufbewahrungsdauer der Personendaten oder die Kriterien zur Festlegung dieser Dauer;

– wenn möglich eine allgemeine Beschreibung der Massnahmen zur Gewährleistung der Datensicherheit (geeignete technische und organisatorische Massnahmen, die es ermöglichen Verletzungen der Datensicherheit zu vermeiden);

– falls die Daten ins Ausland bekanntgegeben werden, die Angabe des Staates sowie die Garantien, durch die ein geeigneter Datenschutz gewährleistet wird.

Davon ausgenommen sind Unternehmen mit weniger als 250 Mitarbeitenden, deren Datenbearbeitung ein geringes Risiko von Verletzungen der Persönlichkeit der betroffenen Personen mit sich bringt.

7. Bekanntgabe von Personendaten ins Ausland

Die Bekanntgabe von Personendaten ins Ausland wird neu formell anders geregelt: der Bundesrat legt verbindlich fest, welche Staaten über einen angemessenen Datenschutzstandard verfügen und folglich wohin der Datenexport erlaubt ist. Bisher hat der EDÖB dies festgelegt, seine Länderliste war jedoch nicht verbindlich. In der Praxis dürfte diese Änderung kaum Auswirkungen haben.

8. Erweiterte Informationspflicht

Die Informationspflicht gegenüber der betroffenen Person wird im nDSG stark ausgebaut. Neu gibt es eine generelle Informationspflicht bei der Beschaffung von Personendaten, bis anhin hat die Pflicht nur die Beschaffung von besonders schützenswerten Personendaten und Persönlichkeitsprofilen betroffen.

Der betroffenen Person sind mindestens folgende Informationen mitzuteilen: Identität und Kontaktdaten des Verantwortlichen, Bearbeitungszweck, Empfänger und Empfängerinnen oder Kategorien von Empfängern und Empfängerinnen, denen Personendaten bekannt gegeben werden, sowie bei Bekanntgabe von Daten ins Ausland zusätzlich der Staat und gegebenenfalls die Garantien für einen geeigneten Datenschutz oder einen allfälligen  Ausnahmetatbestand.

Im neuen Datenschutzgesetz ist nicht geregelt, auf welchem Weg die betroffene Person informiert werden muss. Es gibt also kein gesetzliches Formerfordernis hierfür, aber es ist eine angemessene Form zu wählen. Ob z.B. eine Datenschutzerklärung auf der Website dafür ausreichend ist, wird sich zeigen müssen.

9. Ausbau der Betroffenenrechte

Neben den erweiterten Informationspflichten erhalten Betroffene im nDSG weitere Rechte. So kann zukünftig jede Person vom Verantwortlichen kostenlos die Herausgabe ihrer Personendaten in einem gängigen elektronischen Format verlangen.  Weiter kann Sie auch verlangen, dass ihre Personendaten an einen anderen Verantwortlichen in maschinenlesbarer Form übertragen werden. Dieses Auskunftsrecht kann unter bestimmten Voraussetzungen eingeschränkt werden. Ferner haben Betroffene bei sog. automatisierten Einzelfallentscheidungen (d.h. eine Entscheidung, die ausschliesslich von Computerprogrammen getroffen wurde) ein Widerspruchsrecht. Die Person bekommt die Möglichkeit, ihren Standpunkt darzulegen und kann verlangen, dass die Entscheidung von einer natürlichen Person geprüft wird.

10. Datenschutz-Folgenabschätzung

Vor einer Datenbearbeitung muss neu eine Datenschutz-Folgeabschätzung vom Verantwortlichen vorgenommen werden, wenn eine beabsichtige Datenbearbeitung ein hohes Risiko einer Verletzung der Persönlichkeit oder der Grundrechte der betroffenen Person mit sich bringt. D.h. der Verantwortliche muss insbesondere die geplante Bearbeitung, die entstehenden Risiken sowie geeigneten Massnahmen dagegen darlegen.

11. Meldung von Verletzungen des Datenschutzes

Der Verantwortliche muss neu dem EDÖB bei einer Datenschutzverletzung sobald wie möglich Meldung erstatten, wenn grosse Risiken für die Persönlichkeit oder die Grundrechte der betroffenen Person bestehen. Ist es zu ihrem Schutz erforderlich, muss auch die betroffene Person informiert werden. Geschah die Datenschutzverletzung bei einem Auftragsbearbeiter, muss dieser die Verletzung so rasch als möglich dem Verantwortlichen melden.

12. Ausbau der Befugnisse des EDÖB

Der EDÖB hat neu erweiterte Kompetenzen zur Durchsetzung des nDSG. Er kann von Amtes wegen oder auf Anzeige eine Untersuchung einleiten und bei Verstössen gegen Datenschutzvorschriften weitreichende Massnahmen anordnen, wie die Anpassung oder Unterbrechung der Datenbearbeitung oder gar die Datenlöschung.

Ferner stehen den betroffenen Personen zivilrechtliche Rechtsbehelfe zur Durchsetzung ihrer Ansprüche zur Verfügung. Gleichzeitig wurde die Zivilprozessordnung (ZPO) angepasst, welche die entsprechenden Gerichtsverfahren für kostenlos erklärt.

13. Verschärfte Sanktionen

Der Bussenkatalog wurde im nDSG deutlich verschärft. Neu können private Personen, d.h. die fehlbaren Entscheidungsträger, mit einer Busse von bis zu CHF 250’000.- bestraft werden, wenn sie vorsätzlich die Informations- und Auskunfts-, Mitwirkungs- oder Sorgfaltspflichten verletzen. Eventualvorsatz, also die Inkaufnahme der tatsächlich eingetretenen Verletzung, ist bereits ausreichend.

Was ist zu tun?

Bis zum Inkrafttreten des revidierten Schweizer Datenschutzgesetzes empfehlen wir Ihnen die folgenden Schritte:

• Innerhalb des Unternehmens regeln, wer Zugriff auf welche Daten hat und wer zuständig für den Datenschutz ist;
• Mitarbeitende auf die Thematik sensibilisieren und schulen;
• Prozessablauf für die Meldung von Datenschutzverletzungen festlegen;
• Bestehende Datenschutzerklärung prüfen und gegebenenfalls anpassen;
• Verzeichnis über sämtliche Datenbearbeitungen erstellen;
• Verträge mit Auftragsbearbeitern prüfen, allenfalls Einwilligung für eine Unter-Auftragsbearbeitung erteilen;
• Prozess für die Datenschutz-Folgenabschätzung einführen.

Haben Sie weitere Fragen? Das HütteLAW-Team berät Sie gerne.

Author: Stephanie Kaiser

This content appears as a courtesy of HütteLAW, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.huettelaw.ch.

The post Are you ready for the new Swiss Federal Act on Data Protection? appeared first on China Collaborative Group.

Getting right personal information protection and maternity leave

Currently, companies worldwide are called by both domestic and international regulations to become corporate citizens rather than merely profitable entities. In China, 2021, domestic legislation focused on data and cyber protection and introduced measures to support the third-child policy. Namely, Personal Information Protection Law (“PIPL”), effective from November 1 2022, obligates companies to strengthen personal data handling, process, and storage, and from late November, provinces and municipalities across China extended maternity leave to support the 3-child policy (announced on May 31, 2021, following the Chinese Communist Party Politburo meeting chaired by President Xi Jinping). As a result, in 2022, human resources (“HR”) across China should diligently implement plans to comply with such changes and obligations.

At Horizons, we have been working with clients to adjust employee policies and summarise the main aspects for human resources to practically implement changes.

Personal Information Protection Law

PIPL is the first legislation to address misuse of personal data and sets forth mandatory requirements for companies processing such data. Though data handling related to human resources do not require the employee’s consent, PIPL does introduce stricter obligations for those handling sensitive personal information, such as biometrics, religious beliefs, medical and health and so forth. Namely, companies shall obtain specific consent and inform such individuals of the necessity and impact on their rights and interests. Therefore, companies should audit the existing personal information processing systems to gain a comprehensive employee data overview and, if necessary, draft specific consent forms aligned with PIPL.

Equally, companies may only transfer personal information outside mainland China by fulfilling provisioned conditions. Under PIPL, such conditions are generally outlined and require further guidelines for companies to proceed ahead. We suggest HR keep abreast of forthcoming related guidelines, especially those handling large volumes of personal information that meet a threshold set by the National Cyberspace Authority.

Maternity Leave

In late November 2021, parental leave extensions were adopted in Chinese cities and provinces to stimulate the 3-child policy. Extended leave policies aim to reduce the burden of childbirth and childcare. The extended number of days varies from province to province or city to city, for example in Shanghai, maternity leave is extended to 158 days. For companies, the amended policies shall directly impact employee leave policies and workforce planning and costs to cover extended leave.

We suggest that companies should conduct an employee consultation process before any amendments are made to employee leave policies and ensure employees are entitled to the legally allocated number of leave days. Namely, clear specification of the type of leave and number of days such as maternity leave, paternal leave for working parents and carer’s leave. In this manner, companies can reduce the risk of labour disputes since the amendments are consented by employees and legal blinding.

Both PIPL and extended maternity leave reflect Environment Social and Governance (“ESG”) principles emerging in China. As an important international topic, we anticipate ESG to be present in forthcoming legislation in China, however, governed by President Xi Jinping Thought on Socialism with Chinese Characteristics.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

The post 2022 China Employment appeared first on China Collaborative Group.

DPB-the highlights

As stated, the DPB comprehensively incorporates most of the governing norms on data protection.

Comprehensive Incorporation of Core Principles on Data Protection

There are several internationally recognised core norms for data protection. These include Fair and lawful processing of personal information, Purpose specification, Minimality, quality, Openness and transparency, Data subject participation, Sensitivity, Security and confidentiality and Accountability.[1]

The DPB mandates data controllers to process information fairly, in a transparent manner and subject to the data subject giving consent.[2] This suffices as lawful processing of personal data under the DPB. Section 19 of the DPB also requires specific treatment for sensitive personal data. The DPB requires purpose specification for the processing of personal data, minimality, quality.[3] Data subject participation is guaranteed under part IV of the DPB which outlines the rights of a data subject. Data security is comprehensively regulated under Part V of the DPB. In all this, it is easy to appreciate how comprehensive the DPB is in embracing the international norms and standard on data protection.

Cross-Border Transfers of Personal Data

The DPB adopts a comprehensive framework for cross-border transfer of personal data.[4] This is a great step towards ensuring data protection in cross-border online transactions. This is because the DPB effectively provides a platform against which cross-border flows of personal data can be regulated. This can be sharply contrasted from the old Electronic Transactions and Cyber Security Act, which did not contain any provisions regulating cross-border flows of personal data in electronic transactions.

The DPB can be commended on many fronts including the condition of making data flows primarily subject to a decision on the adequacy of data protection in the foreign country to which the data will be transferred. [5]  The DPB is progressive in that data transfers can be authorised where the foreign country has a law, binding corporate rules, contractual clauses, code of conduct, or certification mechanism that afford an adequate level of protection.[6] This list is exhaustive enough to ensure sufficient facilitation of cross-border flows. In the absence of an adequate level of protection of any of the foregoing, a data transfer can be authorised under these conditions: if the data subject gives consent; if the processing is necessary for performance or conclusion of contract involving the data subject; and where consent cannot be practicably given, the transfer is nevertheless in the best interest of the data subject and the data subject would not have objected to it had he been asked.[7] These exceptions are broad enough to ensure the pace of international transactions is not unnecessarily hindered.

Data Protection by Design and Default

The DPB is also very progressive in that it accords the Authority with the power to publish directions on good practices and codes of conduct in data protection including the application of data protection principles by design and default in the processing of personal data.[8] Data protection by design is a concept that dictates that in light of progressive data protection regimes, companies must ensure that in their activities they incorporate data protection. Essentially since the companies must comply with data protection they must not wait for breaches before they address data protection but rather from the commencement of any action or process data protection must be incorporate and addressed.

On the other hand, data protection by default entails that for those computer products already released, there must be adherence to the highest standard of privacy to ensure data is kept safe and secure. Further, any data necessary for the operation of the product should only be kept for the minimum possible amount of time. The incorporation of these concepts in the DPB is a remarkable step in ensuring that privacy will be respected as technology gets more sophisticated.

The DPB clearly updates the data protection landscape in Malawi to comparable international standards.  This is indeed a shift in the right direction and will ensure that Malawi takes part in the information age. In my next article I shall explore some of the weaknesses in the DPB that may yet be improved to ensure comprehensive legislation is enacted.

Author: Gonjetso Dikiya LLB(Hons) University of Malawi; LLM candidate in Information and Communications Law, University of the Witwatersrand.

Head of Legal Services- Dispute Settlement Services

This content appears as a courtesy of Ritz Attorneys at Law, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit https://ritzattorneys.com/.

[1] Roos Anneliese ‘Core Principles of Data Protection’ 2006 CILSA 102-130.

[2] S. 18 of the DPB

[3] S. 23 of the DPB.

[4] Part VI of the DPB.

[5] S. 34(1)(a) of the DPB.

[6] S. 34(1)(a) of the DPB.

[7] S 36 of the DPB.

[8] S. 13 of the DPB

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Deng Xiaoping initiated the Reform and Opening Up policy and opened the door to the world in 1978. As a result, China’s GDP rose from 367.9 billion yuan in 1978 to 15.45 trillion yuan in 2020 and lifted China from a third-world country to becoming a global economic superpower.

In the last 40 years, China’s significant economic growth has increased its role in the world both as a trade and investment partner and as an international Institution member in the United Nations (1945), World Trade Organisation (2001), and World Bank (1980). As a result, China holds a more influential and significant role in the world today than 40 years ago and more recently demonstrating a more mature and assertive stance.

Internationally, China has increased activism and assertiveness within international institutions (“Institutions”) in recent years. Specifically, China increased engagement in formulating policies and positions within the Institutions and increasingly utilised such Institutions as platforms to articulate its’ position. Equally, today’s institutions represent a broader range of countries with different priorities, needs, and interests than the founding members. Therefore, Institutions are increasingly evolving from the post-second world war era, in which the USA played a primary role in the founding principles of the Institutions.

Domestically, China has adopted a collection of legislation to strengthen the national sovereignty and interests, including:

• The Cyber Security Law of the People’s Republic of China effective from 1 June 2017
• The Export Control Law of the People’s Republic of China effective from 1 December 2020
• Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and other Measures, effective from 9 January 2021
• The Anti-Foreign Sanctions Law of the People’s Republic of China effective from 10 June 2021
• Data Security Law of the People’s Republic of China effective from 1 September 2021

For companies and individuals doing business in or with China, such legislation defines business operations – especially cross-border activities in several areas.

With a rapidly growing middle-class in China, the Chinese market for many companies is an increasingly important and growing market segment. Therefore, companies either invested or planning to invest in the Chinese market cannot disregard national sovereignty and interests’ compliance within their business operations. Below, we highlight the three key areas of national sovereignty and interests’ compliance applicable to companies doing business in or with China.

Cyber and data security

Cybersecurity for many countries is a top national priority to maintain secure networks and protect data from cyber-attacks.

In China, cyber security is centred on the security of the collected data, and companies are obliged to ensure networks collecting and processing the data are secure, monitored and shall not endanger national security or sovereignty.

The Cyber Security Law of the People’s Republic of China (“CSL”) and Data Security Law of the People’s Republic of China (“DSL”) are two primary legislation governing cyberspace and affect all companies working with data collection, processing, and management in China.

Cyber Security Law

The CSL establishes the compliance framework for network operators and is the overarching law for cybersecurity.

Under CSL, the network operator is defined as owners and administrators of the network and network service providers and obliged to ensure servers and data stored, transmitted, or created on such servers are secure and protected from cyber-attacks. Furthermore, the CSL outlines a Critical Information Infrastructure (“CII”), which subjects information crucial to national security and economy to store the collected and produced personal information and important data within the territory of mainland China. Any data required to be transmitted aboard shall be conducted under measures of the Cyberspace Administration of China.

Data Security Law

DSL sets forth an overarching framework to regulate data handling and management accordingly with national sovereignty, security, and development interests.

Under the DSL, the scope and definition of data include any record of information in electronic or other forms and imposes an extraterritorial application to China-related data handling and management.

Organisations and individuals are obliged to ensure and formulate data management policies, cooperate with public security and national security organs that require their data for national security or criminal investigation. Mismanagement of data, specifically those handling important data could face significant liabilities for both the company and individual.

Export Controls

Prior to the adoption of the Export Control Law of the People’s Republic of China (“ECL”), export controls were scattered across several laws. The ECL is the first comprehensive framework establishing export controls, a list of controlled items, and provisioning extra-territorial application to individuals and organisations outside of China who endanger national security and interests.

Under the ECL any export of the controlled items from an individual or organisation within the territory of mainland China to an overseas individual or organisation is subject to certain obligations including obtaining the relevant license from the State Export Control Authorities. Controlled items are defined under the ECL as the following:

• Dual-use items which can be for civil and military purposes or helping to improve military potentials, especially goods, technologies, and services in design, development, production, or application utilised for weapons of mass destruction;
• Military products comprising of equipment, special production facilities, and other related goods, technologies, and services utilised for military purposes;
• Nuclear materials, including nuclear equipment, non-nuclear materials used for nuclear reactors, and related technologies and services;
• Technical materials and data related to the items listed above.

For companies with an international supply chain or engaged in cross-border research and development, the ESL has a significant impact on exporting operations. For example, foreign items containing components assembled or manufactured in China could be deemed as controlled items or cross-border research or technology transfer, activities such as research, inter-company research (where the research and development centre are in China), or technology sales to foreign enterprises could be classified as related technical material and data – thus subject to export control.

Addressing sanctions

In 2021, China addressed the application of foreign legislation and sanctions to Chinese individuals and legal entities both within and outside of the territory of China. Two main legislation were enacted and established a stricter stance against foreign economic sanctions against Chinese organisations and individuals.

Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and other Measures

Early this year, the Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and other Measures (“Rules”) were promogulated by the Ministry of Commerce. The Rules provision a working mechanism for Chinese companies and individuals affected by extraterritorial foreign legislation that prohibit or restrict engagement in normal economic, trade, and related activities with a third State (or region) or its citizens, legal person, or other organisations. Affected individuals or entities are required to such matters to the State Council within 30 days. The State Council shall issue a prohibition order to oppose an unjustified extra-territorial application of foreign legislation and other measures.

Foreign companies in China especially multinationals should note the Rules stipulate any Chinese entities who comply with the unjustified extra-territorial application of foreign legislation subject to a prohibition order can be pursued in court.

The Anti-Foreign Sanctions Law of the People’s Republic of China

The Anti-Foreign Sanctions Law of the People’s Republic of China (“AFSL”) establishes the regulatory framework for foreign persons, both legal entities and individuals, acting against China’s national interests. Under the AFSL, organisations, individuals, and affiliated individuals who directly or indirectly participate in formulating, deciding, and implementing discriminatory restrictive measures against China shall be included in a Sanctions List (“List”). Those included in the List shall be subject to penalties including visa restrictions, prohibitions, or restricted conduct in transactions, cooperation, or other activities with Chinese organisations or individuals. Therefore, for foreign companies and individuals doing business in or with China, AFSL significantly impacts external conduct and communications, and public relations.

Whilst some may view a more assertive China negatively, China’s international significance and role cannot be disregarded. Specifically, in the business world, companies involved in the Chinese market should evaluate their full operations and third parties’ relations and update relevant policies or establish China-specific policies, otherwise risk legal penalties and economic losses. Unless companies forgo the China market completely, the recent legislative movements in strengthening national sovereignty and interests should be reflected in company operations and policies. Companies generating business from China cannot disregard China’s principles around national sovereignty and interests.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

The post China’s assertive stance and the impacts for your company appeared first on China Collaborative Group.

The Law establishes an overarching framework to regulate data handling and management accordingly with national sovereignty, security, and development interests. Under the Data Security Law, the scope and definition of data include any record of information in electronic or other forms and an extraterritorial application to China-related data handling and management. As a result, companies should be implementing changes for the forthcoming September effective date.

At Horizons, we have been advising clients with China commercial interests to evaluate data handling and management in preparation for the Data Security Law. Specifically, we recommend appointing a specific China data management officer who develops compliance policies and correct implementation to safeguard the company. We highlight below the main takeaways and the practical implications for companies doing business in or with China.

Scope of Data

The Data Security Law defines the scope of data and handling as the following in Article 3:

• Data shall refer to any record of information in electronic or other forms.
• Data handling shall refer to the collection, storage, use, processing, transmission, provision, and disclosure of data.
• Data security shall refer to the ability to ensure data is effectively protected, lawfully used, and kept in a secure state by adopting necessary measures.

In practice, the Data Security Law focuses on data security, electronic and non-electronic forms, and data handling activities. The Cyber Security Law adopted on 1 June 2017 focuses on the supervision and management of information and network systems. Therefore, the scope of Data Security Law is broader and affects all companies handling online and offline data.

Data Classification

The Law designates the State to establish a data classification and grading mechanism based on two aspects:

• degree of importance to economic and social development.
• the level of damage to national security, public interests, organisations where the data is tampered with, destroyed, leaked, or illegally obtained or used.

For data identified as important data, a specific catalogue shall be formulated by each region and department. Regional and department shall determine and grade important data accordingly to the relevant industry and areas and establish stricter data protection obligations. Equally, national security data, the lifelines of the national economy, people’s key livelihood, and major public interests shall be classified as core data and subject to a stricter management system.

Therefore, companies should anticipate stricter data management obligations. Specifically for multinationals involved in cross-border data transfer, important or national data could be defined as controlled categories and subject to export controls.

Data Security Protection Obligations

Although obligations are dependent on the type of data handled, we recommend companies appoint specific personnel or management to supervise the data management and ensure policies are correctly implemented. Moreover,

For all companies conducting data handling activities, the Data Security Law stipulates the following obligations:

• establish and perfect a data security management system across the entire workflow;
• adopt lawful and proper methods in collecting data and obtaining data by illegal means is forbidden;
• organise and conduct data security education and training;
• adopt the corresponding technical measures and other necessary measures to ensure data security; and
• take immediate disposal measures, notify users as required and report the matter to the relevant competent department.

For companies handling data classified as important data, the following obligations are provisioned

• specify responsible personnel and management bodies for data security;
• fully implement data security protection responsibilities;
• periodically conduct risk assessments for their data handling activities;
• periodically submit a risk assessment report to the competent department
• the risk assessment shall include the categories and quantities of the important data handled by the organisation, how data is handled, any occurred data security risks, and countermeasures

Moreover, organisations and individuals are obligated to cooperate with public security and national security organs that require their data for national security or criminal investigation. In practice, data privacy policies should be revised accordingly. Where data laws of other jurisdictions may cross over, such as the General Data Protection Regulation, the application of the two could be challenging and specialised advice should be sought.

Extraterritorial Application

Whilst the Data Security Law applies to the data handling activities within the People’s Republic of China (“PRC”), related data handling outside of PRC could be subject to investigation. Specifically, in Article 2, where data handling outside of PRC harms the national security, public interests, or legitimate rights and interests of citizens or organisations of the PC, legal liability shall be investigated. Although specific liabilities are not mentioned, violations of the Data Security Law are subject to civil, public security administration, and criminal penalties. Therefore, companies outside of China handling related China data should still implement China-specific data compliance policies to migrate unintentional violations and risk future liabilities.

Violations of the Data Security Law are subject to fines between 50,000 RMB and 2 million RMB, and companies may concurrently be ordered to suspend relevant business or revocation of business licenses. Consequently, data security protection is significant and shall not be taken lightly.

The Data Security Law paves the significant role of the State in data development and protection, as China advances the digital economy. Mismanagement of data, specifically those handling important data could face significant liabilities for both the company and individual.

If you have questions or would like to know more about the corporate services available to you from Horizons, please contact us at +86 21 5356 3400 or email talktous@horizons-advisory.com.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

The post Are you prepared for the Data Security Law effective from 1 September 2021? appeared first on China Collaborative Group.